Consolidated Results of Operations Fourth quarter, year ended March 2017

Transcription

1 Connecting Markets East & West Consolidated Results of Operations Fourth quarter, year ended March 2017 (US GAAP) Nomura Holdings, Inc. April 2017 Nomura

2 Outline Presentation Executive summary (p. 2-3) Overview of results (p. 4) Business segment results (p. 5) Retail (p. 6-7) Asset Management (p. 8-9) Wholesale (p ) Non-interest expenses (p. 13) Robust financial position (p. 14) Funding and liquidity (p. 15) Financial Supplement Consolidated balance sheet (p. 17) Value at risk (p. 18) Consolidated financial highlights (p. 19) Consolidated income (p. 20) Main revenue items (p. 21) Consolidated results: Income (loss) before income taxes by segment and region (p. 22) Segment Other (p. 23) Retail related data (p ) Asset Management related data (p ) Wholesale related data (p. 30) Number of employees (p. 31)

3 Executive summary full year highlights Income before income taxes, net income 1, EPS 3 Strong YoY growth in income before income taxes and net income 1 Net income 1 at second highest level since reporting under US GAAP started in FY2001/02 (highest level FY2005/06 2 ) Wholesale reported a significant gain in income before income taxes and non-business segment performance improved All international regions profitable; total income before income taxes from international operations of Y88.1bn; group effective tax rate of 25% Income before income taxes Net income EPS (rhs) (yen) 80 Net revenue: Y1,403.2bn(+1% YoY); Income before income taxes: Y322.8bn (+95% YoY); Net income 1 : Y239.6bn (+82% YoY); ROE: 8.7% (FY15/16: 4.9%), EPS 3 : Y65.65 (FY15/16: Y35.52) Three segment total income before income taxes of Y278.6bn (+55% YoY) Retail Retail investors remained in wait-and-see mode due to market uncertainty; Although investor sentiment improved in second half, income before income taxes declined YoY Asset Management Inflows and market factors drove AuM to record high and income before income taxes was at the highest level since FY2001/02 Wholesale Significantly lowered cost base while achieving revenue growth; Income before income taxes strongest in seven years Shareholder returns Dividend per share: Year end Y11; Annual Y20 Launch of share buyback program to deliver shares upon the exercise of stock options and to raise capital efficiency and ensure a flexible capital management policy Total shares: Upper limit of 100 million shares Total value: Upper limit of Y80bn Period: From May 17, 2017, to March 30, FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 0 (1) Net income attributable to Nomura Holdings shareholders. (2) (3) FY2005/06 net income attributable to Nomura Holdings shareholders: Y304.3bn. Diluted net income attributable to Nomura Holdings shareholders per share. 2

4 Executive summary 4Q highlights ly results remained solid: Although income before income taxes declined from particularly strong 3Q, performance improved significantly YoY Three segment total income before income taxes declined QoQ mainly in Wholesale, but all business segments improved YoY International operations profitable for four straight quarters as initiatives to improve profitability delivered results Net revenue: Y349.1bn (-5% QoQ; +25% YoY) Income before income taxes Y82.3bn (-14% QoQ) Net income 1 : Y61.3bn (-13% QoQ) ROE 2 : 8.8% (FY16/17 3Q: 10.3%) EPS 3 : Y17.00 (FY16/17 3Q: Y19.44) Three segment income before income taxes of Y62.6bn (-28% QoQ) Retail Sales of investment trusts and bonds offset a slowdown in sales of stocks, resulting in net revenue and income before income taxes roughly the same as last quarter Asset Management AuM growth contributed to revenues, but net revenue declined from 3Q which included dividend income and gains related to American Century Investments (ACI) Wholesale Net revenue declined QoQ due mainly to a slowdown in Fixed Income revenues in the Americas and AEJ Equities revenues remained roughly unchanged QoQ, while Investment Banking reported stronger revenues both in Japan and overseas Net income attributable to Nomura Holdings shareholders. Calculated using annualized net income attributable to Nomura Holdings shareholders for each period. 3. Diluted net income attributable to Nomura Holdings shareholders per share. Income (loss) before income taxes and net income (loss) 1 Group Income (loss) before income taxes 95.9 Net income (loss) Q 2Q 3Q Three segment income (loss) before income taxes Wholesale Asset Management Retail Q 2Q 3Q 3

5 Overview of results Highlights (billions of yen, except EPS and ROE) 4Q QoQ YoY YoY Net revenue % +25% 1, % Non-interest expenses % -9% 1, % Income before income taxes % % Net income % % EPS 2 Y % - Y % ROE 3 8.8% 8.7% 1. Net income attributable to Nomura Holdings shareholders. 2. Diluted net income attributable to Nomura Holdings shareholders per share. 3. Calculated using annualized net income attributable to Nomura Holdings shareholders for each period. 4

6 Business segment results Net revenue and income (loss) before income taxes 4Q QoQ YoY YoY Net revenue Retail % +21% % Asset Management % +15% % Wholesale % +26% % Subtotal % +23% 1, % Other* % -13% % Unrealized gain (loss) on investments in equity securities held for operating purposes Net revenue % +25% 1, % Income (loss) before income taxes Retail % +112% % Asset Management % +50% % Wholesale % x Subtotal % % Other * % x Unrealized gain (loss) on investments in equity securities held for operating purposes Income (loss) before income taxes % % *Additional information on Other (4Q) Gain on changes to ow n and counterparty credit spread relating to Derivatives (Y2.2bn) 1 1. Unrealized changes in the fair value of financial liabilities elected for the fair value option attributable to instrument-specific credit risk ( own credit adjustments ) are presented separately in other comprehensive income rather than through earnings from the first quarter, year ending March

7 Retail Net revenue and income before income taxes Total sales 1 FY15/ 16 FY16/ 17 FY15/ 16 Net revenue % +21% Non-interest expenses % +6% Income before income taxes Stocks Bonds Investment trusts Discretionary investments, Insurance products 4,000 3,000 2,000 1,000 QoQ YoY % +112% Key points Net revenue: Y374.4bn (-14% YoY) Income before income taxes: Y74.8bn (-41% YoY) Retail clients in wait-and-see mode in H1 due to market uncertainty Sentiment improved as market recovered following US election leading to robust trading in stocks and bonds Fourth quarter Net revenue: Y103.2bn (+2% QoQ; +21% YoY) Income before income taxes: Y25.8bn (-1% QoQ; +112% YoY) Net revenue and income before income taxes both roughly unchanged QoQ Net revenue up QoQ as increase in sales of investment trusts and bonds offset slower sales of stocks Variable expenses such as business development expenses increased Total sales 1 increased 8% QoQ Stocks: -9% QoQ Decline in domestic secondary stock sales combined with lower contribution from primary deals (primary stock subscriptions 2 : Y102.1bn; -38% QoQ) Investment trusts: +14% QoQ Stronger sales of thematic investment trusts (AI related stocks) and inflows into high yield bonds and India equity funds 0 1. Retail channels only. 2. Retail channels, Net & Call, and Hotto Direct. Bonds: Y1,010.2bn; +38% QoQ Sales of JGBs for individual investors at record high (Y602.8bn; +117% QoQ); Contributions from primary deals Discretionary investment and insurance sales increased 10% QoQ 6

8 Retail: Growth in recurring revenue, record sales of JGBs for individual investors Recurring revenue Recurring revenue (annualized, adjusted basis) Recurring revenue cost coverage ratio (rhs) % 24% 25% 25% 25% Discretionary investment assets under management 30% 20% 10% 0% Continued net inflows into discretionary investments and investment trusts; Annualized recurring revenue increased to Y78.6bn Recurring revenue Investment trust net inflows 1 Discretionary investment net inflows 1 Sales of insurance products 2 Client franchise Retail client assets Accounts with balance NISA account applications 3 Net inflows of cash and securities 4 Sales of JGBs for individual investors Mar 2017/4Q Y19.4bn Y40.2bn Y48.2bn Y37.8bn Y107.7trn 5.36m 1.75m -Y43.1bn Dec 2016/3Q Y18.7bn -Y104.5bn Y42.6bn Y37.8bn Y108.0trn 5.38m 1.73m -Y338.3bn ly discretionary investment net inflows 1 2,500 2, , , ,000 1,500 2, , ,000 4Q / Mar 1Q / Jun 2Q / Sep 3Q / Dec 4Q / Mar 1. Retail channels, Japan Wealth Management Group. 2. Retail channels only. 3. Includes Junior NISA. 4. Cash and securities inflows minus outflows, excluding regional financial institutions

9 Asset Management Net revenue and income before income taxes Assets under management (trillions of yen) FY15/ 16 FY16/ 17 FY15/ 16 AuM (net) 1 AuM (gross) Net revenue % +15% Non-interest expenses % +1% Income before income taxes Mar Jun Sep Dec Mar QoQ YoY % +50% Key points Net revenue: Y99.4bn (+4% YoY) Income before income taxes: Y42.3bn (+15% YoY) Strong inflows into ETFs, privately placed funds for regional financial institutions, and global investment advisory business; AuM driven up also by market factors Income before income taxes at highest level since year ended March 2002 on the back of revenue growth and cost containment Fourth quarter Net revenue: Y23.3bn (-19% QoQ; +15% YoY) Income before income taxes: Y8.7bn (-38% QoQ; +50% YoY) AuM reached another record high, helping drive revenue growth However, net revenue declined from 3Q which included dividend income and ACI related gains Investment trust business Ongoing solid inflows into ETFs and privately placed funds for regional financial institutions Top 3 publicly offered stock funds (excl. ETFs) by inflows in 4Q Nomura Global AI Stock Fund: Y181.3bn Nomura India Investment Fund: Y28.1bn Nomura Fund Wrap Bond Premier: Y20.6bn Investment advisory and international businesses Ongoing inflows both in Japan and overseas into strong performing high yield products 1. Net after deducting duplications from assets under management (gross) of Nomura Asset Management, Nomura Funds Research and Technologies, Nomura Corporate Research and Asset Management and Wealth Square. 2. Total assets under management of above companies. 8

10 Asset management: ETF AuM growth driven by increasing investor demand Assets under management (net) 1 by business Nomura Asset Management public investment trust market share 2 (trillions of yen) Investment trust business Investment advisory business % 24.0% 24.8% 24.0% 24.2% 25.4% 25.7% % 0.0 1,500 1, ,000 Mar Jun Sep Dec Mar Inflows into investment trust business Investment trust business (excl. ETFs) MRFs, MMFs, etc. Other investment trusts (excl. ETFs) ,203 ETFs 20.0% ETF growth Mar Jun Sep Dec Mar ETF AuM topped Y10trn driven by increasing investor demand Launched ETF that tracks Nikkei 225 High Dividend Yield Stock 50 Index in Feb 2017, further enhancing product lineup; Industry-leading lineup of 48 ETFs listed in Japan (trillions of yen) Mar Jun Sep Dec Mar FY15/16 AuM FY16/17 1. Net after deducting duplications from assets under management (gross) of Nomura Asset Management, Nomura Funds Research and Technologies, Nomura Corporate Research and Asset Management and Wealth Square. 2. Source: The Investment Trusts Association, Japan 3. Based on assets under management (net) 9

11 Wholesale Net revenue and income (loss) before income taxes FY15/ 16 FY16 /17 FY15/ 16 Global Markets % +33% Investment Banking % -1% Net revenue % +26% Non-interest expenses % -10% Income (loss) before income taxes Net revenue by region QoQ YoY % Americas EMEA AEJ Japan Key points Net revenue: Y739.3bn (+3% YoY) Income before income taxes: Y161.4bn (10.5x YoY) Significantly lowered cost base while achieving revenue growth; Income before income taxes strongest in seven years Global Markets revenue up on strong performance in Rates and Spread Products; Investment Banking revenues declined Significant improvement in profitability following strategic review of EMEA and Americas businesses Fourth quarter Net revenue: Y171.2bn (-13% QoQ; +26% YoY) Income before income taxes: Y28.1bn (-41% QoQ) Revenues down QoQ Fixed Income revenues slowed primarily in Americas and AEJ, while Equities revenues remained unchanged QoQ Investment Banking reported stronger revenues both in Japan and internationally Net revenue by region (QoQ; YoY) Americas: Y53.3bn (-18%; +17%) Fixed Income slowed QoQ, while Investment Banking and Equities revenues increased Japan: Y50.8bn (-13%; +4%) Global Markets performance slowed QoQ, mainly in Equity Derivatives, Rates, and G10 FX EMEA: Y49.4bn (+25%; +108%) Fixed Income continued to trend upwards as Rates and Credit were strong AEJ: Y17.7bn (-48%; -2%) Fixed Income revenues declined due to slowdown in Emerging Markets, while Equities revenues increased 10

12 Wholesale: Global Markets Net revenue full year and 4Q net revenue by region Equities Fixed Income QoQ -17% YoY +33% +7% Americas EMEA YoY YoY QoQ FI EQ 27.6 Key points Fourth quarter Net revenue: Y143.5bn (-17% QoQ; +33% YoY) Fixed Income slowed QoQ due to a decline in client activity and volatility Fixed Income Net revenue: Y86.5bn (-26% QoQ; 3.1x YoY) Emerging Markets and G10 FX slowed from strong 3Q Credit revenues increased significantly on improved market conditions, while Rates remained solid Equities Net revenue: Y57.0bn (+2% QoQ; -29% YoY) Improvement in Derivatives in both Americas and AEJ, while Cash Equities remained roughly unchanged QoQ AEJ Japan 0% ~ + 5% + 5% ~ + 15% + 15% ~ Revenues increased YoY as Fixed Income improved driven by international performance, offsetting a slowdown in Equites due to low market activity Fourth quarter Americas: Fixed Income slowed compared to strong 3Q, primarily in Rates and FX; Equities revenues increased as Derivatives offset a slowdown in Cash Equities EMEA: Fixed Income revenues increased strongly due to Rates and Credit AEJ: In Equities, both Cash Equities and Derivatives improved; In Fixed Income, Emerging Markets slowed compared to strong 3Q Japan: Fixed Income reported a slowdown in Rates and FX, while Equities saw sluggish performance in Derivatives 11

13 Wholesale: Investment Banking Net revenue 1 Investment Banking (gross) Investment Banking Key points Fourth quarter Net revenue: Y27.7bn (+14% QoQ; -1% YoY) QoQ +14% YoY -1% Investment Banking (gross) revenue up 20% QoQ to Y50.2bn driven by growth in Japan and international businesses Japan ECM revenues increased as we acted as lead manager on Euroyen CB issuances and a global IPO DCM business solid amid ongoing low rate environment International International revenue up QoQ and YoY driven by strong performance in Americas and EMEA Completion of high-profile M&A deals, financing associated with M&A deals, and refinancing mandates all contributed to revenues 1. Past figures for Investment Banking and Investment Banking (gross) have been reclassified from 2Q in line with revised disclosure method. 2. Source: Thomson Reuters (Apr 2016 Mar 2017) Decline in full year gross revenue, but international revenues up driven by Americas Kyushu Electric Pow er Euroyen CB (Y153bn) Ezaki Glico Euroyen CB (Y30.9bn) EMEA ECM revenues dow n follow ing business review M&A and M&A-related financing revenues up Asia (incl. Japan) Retained top spot on Japan ECM league table 2 amid decline in value of equity issuance in Japan AEJ revenues up w ith contributions in M&A and DCM SoftBank Group Retail bond/wholesale bond (Y400bn / Y50bn) First Origin International / Hong Kong Life Insurance (HKD7.1bn) Grifols (Spain) acquisition/financing of Hologic s (US) share of NAT blood screening business (M&A: $1.9bn; ALF: $6.3bn ) Sushiro Global Holdings Global IPO (Y76.1bn) Asian Development Bank USD Global Benchmark ($4.0bn) Deals involving international companies Mori Trust Hotel Reit IPO(Y45.2bn) Bombay Stock Exchange IPO(INR12.4bn) Bridgepoint(UK)etc. sale of shares of Nordic Cinema Group to AMC Entertainment Holdings (US) ($949m) Teijin/Continental Structural Plastics (US) ($825m) Americas Highest revenues since FY2008/09 Revenues up due to M&A and M&A-related financing 12

14 Non-interest expenses Key points Other Business development expenses Occupancy and related depreciation Information processing and communications Commissions and floor brokerage Compensation and benefits 1,500 1, , , Compensation and benefits % Commissions and floor brokerage % Inf ormation processing and communications % Occupancy and related depreciation % Business development expenses % Other % Total 1, , % QoQ Non-interest expenses: Y1,080.4bn (-12% YoY) Compensation and benefits (-14% YoY) Decline due to cost reductions mainly overseas Continued discipline on pay for performance Non-personnel expenses (-11% YoY) Decline in commissions and floor brokerage due to lower trading volumes Controlled information processing and communications expenses Fourth quarter Non-interest expenses: Y266.8bn (-2% QoQ) Compensation and benefits (-10% QoQ) Decline due to focus on pay for performance Non-personnel expenses (+5% QoQ) Commissions and floor brokerage increased in line with trading volumes Information processing and communications expenses increased due to higher system usage charges Business development expenses increased due to marketing campaign in Retail for JGBs for individual investors 13

15 Robust financial position Balance sheet related indicators and capital ratios RWA and CET 1 capital ratio 3 Mar 2016 Dec 2016 Mar 2017 Total assets Y41.1trn Y43.1trn Y42.9trn Shareholders equity Y2.7trn Y2.8trn Y2.8trn (trillions of yen) % 15.0 RWA (Basel 3) (lhs) 16.3% CET1 capital ratio (Basel 3) (rhs) 18.0% 17.7% 18.2% 17.9% 20.0% 15.0% Gross leverage 15.2x 15.3x 15.4x Net leverage 1 9.6x 8.9x 8.6x 5.0 Level 3 assets 2 Y0.4trn Y0.5trn Y0.4trn (net) 0.0 Liquidity portfolio Y5.9trn Y5.4trn Y5.0trn Basel 3 basis Mar 2016 Dec 2016 Mar Tier 1 capital 2,578 2,717 2,691 Tier 2 capital Total capital 2,901 2,846 2,801 RWA 15,971 14,578 13,987 Tier 1 capital ratio 16.1% 18.6% 19.2% CET 1 capital ratio % 17.7% 18.2% Consolidated capital adequacy ratio 18.1% 19.5% 20.0% Consolidated leverage ratio % 4.47% 4.63% HQLA 5 Y6.2trn Y4.8trn Y4.5trn LCR % 178.6% 180.0% Mar Jun Sep Dec Mar Level 3 assets 2 and net level 3 assets/tier 1 capital 1. Net leverage: Total assets minus securities purchased under agreements to resell and securities borrowed, divided by Nomura Holdings shareholders equity. 2. Mar 2017 is preliminary. 3. CET 1 capital ratio is defined as Tier 1 capital minus Additional Tier 1 capital divided by risk-weighted assets. 4. Tier 1 capital divided by exposure (sum of on-balance sheet exposures and off-balance sheet items). 5. Monthly average for each quarter % Level 3 Assets Net Level 3 Assets Net Level 3 Assets / Tier 1 Capital 17% 16% 18% Fully loaded Basel applied to balance sheet at end Mar (estimate) Mar Jun Sep Dec Mar 17% 10.0% 5.0% 0.0% 30% 20% 10% 0% 14

16 Funding and liquidity Balance sheet structure Balance sheet (As of Mar 2017) Highly liquid, healthy balance sheet structure 79% of assets are highly liquid trading and related assets that are marked-to-market and matched to trading and related liabilities through repos etc. (regionally and by currency) Other assets are funded by equity and long-term debt, ensuring structural stability Liquidity portfolio 2 Liquidity portfolio: Y5.0trn, or 12% of total assets Maintain a high quality liquidity portfolio surplus without the need for additional unsecured funding over a certain period Assets Trading assets and related 1 Cash and cash deposits Other assets Liabilities and equity Trading liabilities and related 1 Other liabilities Short-term borrowings Long-term borrowings Total equity Unsecured funding 2 Approx. 80% of unsecured funding is long-term debt Diversified sources of funding Short-term debt 14% Long-term debt due within 1yr, 6% Long-term debt, 80% Average maturity 5.1 years 3 International 24% Japan 76% Breakdow n of Long-term short-term/longterm debt debt by region Loans (incl. subordinated) Euro MTN/Yen, retail bonds, etc. Euro MTN/Other, wholesale bonds, etc. Funding of long-term debt Bank lending market Retail market Wholesale market 1. Trading assets and related: Reverse repo, securities, derivatives, etc. Trading liabilities and related: Repo, securities loaned, derivatives, etc. 2. Definition differs from financial disclosures reflecting Liquidity Management s view. Cash and cash deposits portion of liquidity portfolio excludes funds on deposit at exchanges and segregated client funds. 3. Excludes long-term debt due within one year. Redemption schedule is individually estimated by considering the probability of redemption under certain stressed scenarios. 15

17 Financial Supplement

18 Consolidated balance sheet Mar 31, 2016 Mar 31, 2017 Increase (Decrease) Mar 31, 2016 Mar 31, 2017 Increase (Decrease) Assets Liabilities Total cash and cash deposits 3,899 2, Short-term borrowings Total payables and deposits 4,249 3, Total loans and receivables 2,970 3, Total collateralized financing 16,606 19,061 2,456 Trading liabilities 7,499 8, Total collateralized agreements 15,078 18,730 3,652 Other liabilities 1,201 1, Long-term borrowings 8,130 7, Total trading assets 1 and private equity investments 16,410 15,192-1,218 Total liabilities 38,347 40,008 1,661 Total other assets 2,734 2, Equity Total NHI shareholders' equity 2,700 2, Noncontrolling interest Total assets 41,090 42,852 1,762 Total liabilities and equity 41,090 42,852 1, Including securities pledged as collateral. 17

19 Value at risk Definition 99% confidence level 1-day time horizon for outstanding portfolio Inter-product price fluctuations considered From April 1, 2016, to March 31, 2017 Maximum: 6.7 Minimum: 2.7 Average: 4.3 Mar Mar Mar Jun Sep Dec Mar Equity Interest rate Foreign exchange Sub-total Diversification benefit VaR

20 Consolidated financial highlights Net income (loss)attributable to Nomura Holdings, Inc. (''NHI'') shareholders ROE(%) % % % 6% 3% 0% % % % % 8.7% 61.3 Net revenue 1, , % 6% 3% 0% Income (loss) before income taxes Net income (loss) attributable to Nomura Holdings, Inc. ("NHI") shareholders Total NHI shareholders' equity 2, , , , , , ,789.9 ROE (%) 1 4.9% 8.7% 4.9% 7.0% 8.1% 8.6% 8.7% Basic-Net income (loss) attributable to NHI shareholders per share (yen) Diluted-Net income (loss) attributable to NHI shareholders per share (yen) 1. ly ROE is calculated using annualized year-to-date net income (loss) Total NHI shareholders' equity per share (yen)

21 Consolidated income Revenue Commissions Fees from investment banking Asset management and portfolio service fees Net gain on trading Gain on private equity investments Interest and dividends Gain (loss) on investments in equity securities Other Total revenue 1, , Interest expense Net revenue 1, , Non-interest expenses 1, , Income (loss) before income taxes Net income (loss) attributable to NHI shareholders

22 Main revenue items Commissions Stock brokerage commissions Other brokerage commissions Commissions for distribution of investment trusts Other Total Fees from investment banking Equity underwriting and distribution Bond underwriting and distribution M&A / Financial advisory fees Other Total Asset management and portfolio service fees Asset management fees Administration fees Custodial fees Total

23 Consolidated results: Income (loss) before income taxes by segment and region Adjustment of consolidated results and segment results: Income (loss) before income taxes Retail Asset Management Wholesale Three business segments total Other Segments total Unrealized gain (loss) on investments in equity securities held for operating purposes Income (loss) before income taxes Geographic information: Income (loss) before income taxes Americas Europe Asia and Oceania Subtotal Japan Income (loss) before income taxes Geographic information is based on U.S. GAAP. (Figures are preliminary for the three months ended March 31, 2017). Nomura s revenues and expenses are allocated based on the country of domicile of the legal entity providing the service. This information is not used for business management purposes. 22

24 Segment Other Income (loss) before income taxes Net gain (loss) related to economic hedging transactions Realized gain on investments in equity securities held for operating purposes Equity in earnings of affiliates Corporate items Others Income (loss) before income taxes

25 Retail related data (1) QoQ YoY Commissions % 22.1% Of which, brokerage commission % 21.8% Of which, commissions for distribution of investment trusts % 65.5% Sales credit % 36.1% Fees from investment banking and other % 25.0% Investment trust administration fees and other % 6.7% Net interest revenue % 12.6% Net revenue % 21.4% Non-interest expenses % 6.3% Income before income taxes % 112.0% Domestic distribution volume of investment trusts 1 5, , % 17.5% Bond investment trusts 1, % % Stock investment trusts 3, , % 61.0% Foreign investment trusts % -26.5% Other Accumulated value of annuity insurance policies 2, , , , , , , % 4.8% Sales of JGBs for individual investors (transaction base) , % 156.7% Retail foreign currency bond sales 1, , % -0.6% 1. Excluding Net & Call and Hotto Direct. 24

26 Retail related data (2) Retail client assets Other (trillions of yen) Foreign investment trusts Bond investment trusts Stock investment trusts Domestic bonds 40 Foreign currency bonds 20 Equities 0 Mar Mar Mar Jun Sep Dec Mar Equities Foreign currency bonds Domestic bonds Stock investment trusts Bond investment trusts Foreign investment trusts Other Total Including CBs and warrants. 2. Including annuity insurance. 25

27 Retail related data (3) Net inflows of cash and securities 1 1,000 1, Cash and securities inflows minus outflows, excluding regional financial institutions. 26

28 Retail related data (4) Number of accounts (thousands) Mar Mar Mar Jun Sep Dec Mar Accounts with balance 5,389 5,363 5,389 5,390 5,384 5,383 5,363 Equity holding accounts 2,827 2,836 2,827 2,842 2,856 2,839 2,836 Nomura Home Trade / Net & Call accounts 4,412 4,528 4,412 4,443 4,470 4,497 4,528 New Individual accounts / IT share 1 (thousands) New individual accounts IT share 1 No. of orders 58% 57% 59% 58% 58% 56% 57% Transaction value 36% 34% 36% 35% 35% 33% 35% 1. Percentage of cash stock transactions conducted via Nomura Home Trade. 27

29 Asset Management related data (1) QoQ YoY Net revenue % 14.8% Non-interest expenses % 0.7% Income before income taxes % 50.1% Assets under management by company (trillions of yen) Mar Mar Mar Jun Sep Dec Mar Nomura Asset Management Nomura Funds Research and Technologies Nomura Corporate Research and Asset Management Assets under management (gross) Group company overlap Assets under management (net) Total assets under management for Nomura Asset Management, Nomura Funds Research and Technologies, Nomura Corporate Research and Asset Management and Wealth Square. 2. Net after deducting duplications from assets under management (gross). 28

30 Asset Management related data (2) Asset inflows/outflows by business 1 Investment trusts business 2,717 1, , of which ETFs 2,339 1, ,203 Investment advisory business 2, Net asset inflow 4,755 2, ,132 1,284 Domestic public investment trust market and Nomura Asset Management market share 2 (trillions of yen) Domestic public stock investment trusts 1. Based on assets under management (net). 2. Source:Investment Trusts Association, Japan. Mar Mar Mar Jun Sep Dec Mar Market Nomura Asset Management share (%) 21% 23% 21% 21% 21% 22% 23% Domestic public bond investment trusts ETF Market Nomura Asset Management share (%) 46% 44% 46% 44% 44% 44% 44% Market Nomura Asset Management share (%) 48% 45% 48% 47% 45% 46% 45% 29

31 Wholesale related data QoQ YoY Net revenue % 25.7% Non-interest expenses % -10.1% Income (loss) before income taxes % - Breakdown of Wholesale revenues QoQ YoY Fixed Income % 213.2% Equities % -29.3% Global Markets Investment Banking 1 Net revenue % 32.5% % -1.0% % 25.7% Investment Banking (gross) % 1.0% 1. Past figures for Investment Banking and Investment Banking (gross) have been reclassified from 2Q in line with revised disclosure method. 30

32 Number of employees Mar Mar Mar Jun Sep Dec Mar Japan 16,083 16,227 16,083 16,792 16,543 16,450 16,227 Europe 3,424 3,026 3,424 3,170 3,147 3,063 3,026 Americas 2,503 2,314 2,503 2,481 2,297 2,279 2,314 Asia and Oceania 1 6,855 6,619 6,855 6,769 6,667 6,606 6,619 Total 28,865 28,186 28,865 29,212 28,654 28,398 28, Includes Powai office in India. 31

33 Disclaimer This document is produced by Nomura Holdings, Inc. ( Nomura ). Nothing in this document shall be considered as an offer to sell or solicitation of an offer to buy any security, commodity or other instrument, including securities issued by Nomura or any affiliate thereof. Offers to sell, sales, solicitations to buy, or purchases of any securities issued by Nomura or any affiliate thereof may only be made or entered into pursuant to appropriate offering materials or a prospectus prepared and distributed according to the laws, regulations, rules and market practices of the jurisdictions in which such offers or sales may be made. The information and opinions contained in this document have been obtained from sources believed to be reliable, but no representations or warranty, express or implied, are made that such information is accurate or complete and no responsibility or liability can be accepted by Nomura for errors or omissions or for any losses arising from the use of this information. All rights regarding this document are reserved by Nomura unless otherwise indicated. No part of this document shall be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Nomura. This document contains statements that may constitute, and from time to time our management may make forward-looking statements within the meaning of the safe harbor provisions of The Private Securities Litigation Reform Act of Any such statements must be read in the context of the offering materials pursuant to which any securities may be offered or sold in the United States. These forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside our control. Actual results and financial condition may differ, possibly materially, from what is indicated in those forward-looking statements. You should not place undue reliance on any forward-looking statement and should consider all of the following uncertainties and risk factors, as well as those more fully discussed under Nomura s most recent Annual Report on Form 20-F and other reports filed with the U.S. Securities and Exchange Commission ( SEC ) that are available on Nomura s website ( and on the SEC s website ( Important risk factors that could cause actual results to differ from those in specific forward-looking statements include, without limitation, economic and market conditions, political events and investor sentiments, liquidity of secondary markets, level and volatility of interest rates, currency exchange rates, security valuations, competitive conditions and size, and the number and timing of transactions. Forward-looking statements speak only as of the date they are made, and Nomura undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made. The consolidated financial information in this document is unaudited.

34 Nomura Holdings, Inc.